1. 1. The standard deviation for NSLT health premium and reserve risk shall be equal to the following:
\sigma_{\mathrm{NSLTh}} = \frac{1}{V_{\mathrm{NSLTh}}} \cdot \sqrt{\sum_{s,t} \mathrm{CorrHS}_{(s,t)} \cdot \sigma_s \cdot V_s \cdot \sigma_t \cdot V_t}
where:
(a)((a)) VNSLThdenotesV_{NSLTh} denotes the volume measure for NSLT health premium and reserve risk;
(b)((b)) the sum covers all possible combinations (s,t) of the segments set out in Annex XIV;
(c)((c)) CorrHS(s,t)denotesCorrHS_{(s,t)} denotes the correlation coefficient for NSLT health premium and reserve risk for segmentsandsegment segmenttsets and segment t set out in Annex XV;
(d)((d)) σsandσtdenoteσ_{s} and σ_{t} denote standard deviations for NSLT health premium and reserve risk of segmentssandtrespectively;segments s and t respectively;
(e)((e)) VsandVtdenoteV_{s} and V_{t} denote volume measures for premium and reserve risk of segmentssandt,segments s and t, referred to in Annex XIV, respectively.
2. 2. For all segments set out in Annex XIV, the standard deviation for NSLT health premium and reserve risk of a particular segment s shall be equal to the following:
\sigma_{\mathrm{s}}=\frac{\sqrt{\sigma_{(\mathrm{prem},\mathrm{s})}^{2} \cdot V_{(\mathrm{prem},\mathrm{s})}^{2}+\sigma_{(\mathrm{prem},\mathrm{s})} \cdot V_{(\mathrm{prem},\mathrm{s})} \cdot \sigma_{(\mathrm{res},\mathrm{s})} \cdot V_{(\mathrm{res},\mathrm{s})}+\sigma_{(\mathrm{res},\mathrm{s})}^{2} \cdot V_{(\mathrm{res},\mathrm{s})}^{2}}}{V_{(\mathrm{prem},\mathrm{s})}+V_{(\mathrm{res},\mathrm{s})}}
where:
(a)((a)) σ(prem,s)denotesσ_{(prem,s)} denotes the standard deviation for NSLT health premium risk of segmentsdeterminedsegment s determined in accordance with paragraph 3;
(b)((b)) σ(res,s)denotesσ_{(res,s)} denotes the standard deviation for NSLT health reserve risk of segmentsassegment s as set out in Annex XIV;
(c)((c)) V(prem,s)denotesV_{(prem,s)} denotes the volume measure for premium risk of segmentsreferredsegment s referred to in Article 147;
(d)((d)) V(res,s)denotesV_{(res,s)} denotes the volume measure for reserve risk of segmentsreferredsegment s referred to in Article 147.
3. 3. For all segments set out in Annex XIV, the standard deviation for NSLT health premium risk of a particular segment shall be equal to the product of the standard deviation for NSLT health gross premium risk of the segment set out in Annex XIV and the adjustment factor for non-proportional reinsurance. For all segments set out in Annex XIV the adjustment factor for non-proportional reinsurance shall be equal to 100 %.